Let’s review some legal issues that these folks are facing. (1) the IRS has the right to levy on any property owned or receivable by a party (except retirement accounts). Further, the IRS can sell real estate. Now people can contrary to popular opinion get out of a few tax debts by filing bankruptcy. The rules are that the debt must be for taxes more than three years ago and the returns filed at least 240 days prior to the bankruptcy. If it does not meet those requirements it is non-dischargeable. Also trust fund taxes as we’ve discussed before are non-dischargeable. Further, the IRS will look at things like offers in compromise, installment agreements and putting people in curently non-collectible status based upon their incomes, expenses and assets.